By Beau Jarvis, President and CEO, Wesgroup Properties
Monday’s close result could mean another stagnant Parliament – or it could offer a rare opportunity to find common ground. Housing might just be the bridge.
Housing affordability and the cost of living aren’t partisan issues anymore. They cut across every region, every income level, and every generation. And, believe it or not, there’s surprising overlap in the ideas both Conservatives and Liberals put forward this election: reviving tax incentives for rental construction, deferring capital gains taxes on reinvestment, and scrapping GST on new housing.
If leadership on both sides is willing to prioritize delivery over division, there is a clear path to meaningful action.
The first opportunity is the revival of the MURB (Multiple Unit Residential Building) tax incentive program, proposed by the Liberals. Originally popular in the 1970s and early ’80s, the MURB initiative allowed individual investors to write off rental housing investments against other income. It drove a significant wave of rental housing construction that today exists as affordable rental in urban markets – proof that filtering works.
The modernized version proposed by the Liberals revives that same spirit: reward private capital for delivering purpose-built rental housing without massive new bureaucracies or permanent subsidies. It’s a rare instance where a market-driven Liberal policy and Conservative principles align almost perfectly. Increasing rental supply without heavy government intervention should be a win for both sides.
The second opportunity is the Conservative proposal to allow capital gains tax deferrals when reinvesting in Canada. Entrepreneurs, business owners, and real estate investors could defer their capital gains if they roll over their investment into another Canadian asset within a defined period.
While often framed in partisan debates as a tax cut for the wealthy, the policy’s practical impact could be transformative. Right now, billions of dollars are locked up in existing assets. Unlocking that capital – and encouraging it to flow into new housing, infrastructure, and business creation – could transform the landscape. At a time when private sector construction is stalling and borrowing costs are high, Canada badly needs productive reinvestment.
Third, both parties now support removing GST from new housing. The Liberal platform limited this to first time home buyers of homes under $1 million, while the Conservative proposal did not have a first time restriction and was eligible on homes up to $1.3 million. Finding alignment on this would immediately make housing more affordable.
While new ideas get attention, it’s also worth protecting what’s already working.
Programs like CMHC’s Apartment Construction Loan Program (ACLP) and Mortgage Loan Insurance (MLI Select) have delivered more new rental housing than almost any other recent government initiative. By offering low-cost financing and more favorable insurance terms for projects that meet affordability, accessibility, or energy-efficiency standards, these programs have made otherwise marginal projects financially viable across the country.
Rather than reinvent the wheel by attempting to create a new public homebuilding agency from the ground up, policymakers should move quickly to expand ACLP and MLI capacity – with a focus on streamlining approvals, increasing available funding, and updating underwriting standards to reflect today’s tighter financial markets. Supporting what’s already working could be the fastest way to keep rental supply growing while new policies ramp up.
Beyond the immediate wins, there are bigger opportunities if Parliament is willing to aim higher.
Tying federal infrastructure funding to actual housing approvals could break the deadlock in municipal politics, rewarding councils that say yes to growth, not just those who block it. Reforming Development Cost Charges (DCCs) – deferring payment until after homes are built – would lower risk for builders without depriving cities of revenue.
These are harder lifts politically. But the reward is bigger: a system that can deliver homes at the pace Canadians need.
In a minority Parliament, doing nothing isn’t neutral, it’s risky. Voters are tired of partisan gridlock, especially on issues that hit their wallets.
Housing is a rare file where both sides can claim real solutions. For Poilievre’s Conservatives, proving they can move the affordability needle would strengthen their economic case. For Carney’s Liberals, showing pragmatism and market alignment would help reset their brand for a new generation.
The incentives are there. The policies are ready. All that’s missing is the will to take the win – even if it means sharing the credit.
